Airbnb Host Taxes in New York - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Basics for Airbnb Hosts in New York

The vibrant New York hospitality scene, fueled by platforms like Airbnb, presents unique tax considerations for property owners. Revenue generated from short-term rentals is generally considered taxable income at both the federal and New York State levels, requiring diligent record-keeping and accurate reporting. Understanding these obligations is crucial for avoiding penalties and maximizing potential deductions.

New York State Tax Rules for Rental Income

As a resident of New York, a state income tax return is required regardless of the amount of Airbnb income earned. New York operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, New York utilizes Form IT-201, Resident Income Tax Return, as the primary form for reporting self-employment and rental income. Rental income is reported on Schedule B, Rental Property. It's important to note that New York also has specific rules regarding the taxation of short-term rentals in New York City, including potential registration requirements and collection of hotel occupancy taxes. These NYC-specific rules are in addition to state income tax obligations. Failure to comply with NYC regulations can result in significant fines. Furthermore, New York State requires estimated tax payments if your tax liability exceeds $1,000. These payments are typically made quarterly. Accurate record-keeping of all rental income and expenses is paramount for proper state tax filing. The New York State Department of Taxation and Finance provides detailed guidance and resources for taxpayers; a comprehensive overview can be found at https://www.tax.ny.gov/. Remember to consult the latest tax forms and instructions available on the Department of Taxation and Finance website, as tax laws are subject to change.

The Critical Tax Question: Are You a Business or a Rental?

Determining whether your Airbnb activity constitutes a passive rental or an active business is the most important tax question for a host, as it directly impacts your self-employment tax liability.

• Schedule E (Passive Rental Income): Most casual hosts report their income and expenses on Schedule E (Supplemental Income and Loss). This applies if you primarily provide basic lodging and minimal services, such as cleaning between guests. Reporting on Schedule E generally exempts you from the 15.3% self-employment tax.
• Schedule C (Active Business Income): If you provide "substantial services" to guests – such as daily cleaning, providing meals, concierge services, or offering amenities comparable to a hotel – the IRS may classify your activity as an active business. In this case, you must report income and expenses on Schedule C (Profit or Loss From Business) and are subject to the 15.3% self-employment tax (Social Security and Medicare).

Top Tax Write-offs for New York Hosts

• Platform Fees: Fees charged by Airbnb, VRBO, and other platforms are fully deductible as business expenses.
• Mortgage Interest & Property Taxes: You can deduct the portion of your mortgage interest and property taxes that corresponds to the percentage of your home used for rental purposes and the period it was rented. For example, if your property was rented 50% of the year, you can deduct 50% of these expenses.
• Repairs, Maintenance & Cleaning: Costs associated with repairing and maintaining the rental property, including professional cleaning services and cleaning supplies, are deductible. Routine maintenance is deductible; however, improvements that increase the property's value are generally depreciated.
• Depreciation: This is a powerful deduction that allows you to recover the cost of your rental property over its useful life. It's a complex calculation, and consulting with a qualified tax professional is highly recommended to ensure accurate application.